REVENUE CAPS and APPRAISAL CAPS

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REVENUE CAPS andAPPRAISAL CAPS

• Effects on County Government

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TRUE OR FALSE?

• Currently there is no appraisal cap on
  residential homesteads?
• The current appraisal cap on residential
  homesteads is 10.

FALSE
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What is an Appraisal Cap?

• Limitation on the amount property values can rise
  each year.
• Currently, the taxable value of a homestead
  before exemptions cannot rise by more than 10
  per year regardless of market value.
• Recent proposals would change this cap to 3, 5
  or a local option.

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The Results

• Appraisal Caps shift the tax burden from high
  growth areas of the county to areas where values
  stay the same or go down.
• Everybody else picks up the tax burden for the
  few people who benefit. If your home value is
  not increasing, your taxes will increase to
  compensate.

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TRUE OR FALSE?

• Texas counties currently have a revenue cap.

TRUE
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What is a Revenue Cap?

• Limit on the amount of additional tax revenue
  that can be raised.
• Currently counties have an 8 cap exceeding
  the cap can trigger a rollback election.
  Expensive! (Travis County cost for a county wide
  election is 1million)
• Recent proposals would change this cap to a
  population growth plus inflation factor, 3, or
  5.

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Total Property Tax Levy 2004
Data Source Texas Comptroller of Public Accounts
8
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10
Jasper Co. Revenues 06
11
Jasper Co. Expenditures 06
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326,488 Impact

• 3 Revenue Cap gt
• Revenue Loss gt
• CUTS TO SERVICES
• Commissioners Court must make a decision
• regarding a cut in services to cover the budget
• deficit. 326,488 is equivalent to the following
  budgets
• Emergency management
• Sheriff patrol
• Healthcare unit
• Senior citizens services
• Child foster care
• Public library
• Historical commission

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Mandatory vs. Discretionary(Required vs.
Optional Services)

• Which of the following services that county
  government provides are mandatory?
• A. Employee Health Insurance/Retirement
• B. Emergency Medical Services
• C. Sheriffs Patrol
• D. None of the Above

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Jails

• Mandatory
• Meals
• Medical Treatment
• Staff
• Facilities
• Access to Legal
• Transportation
• Equipment
• Commissary
• Training

• Discretionary
• Quality and Quantity of Meals
• Level of Medical Care Dental Care
• Rehabilitation Programs
• Work Programs
• Victim/Witness Secure Telecommunications

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Judicial System

• Mandatory
• Courts-staff, equipment, facilities
• Indigent legal services
• Court Administration
• Clerks-record keeping
• Constable-service of process
• Sheriff-service of process
• Sheriff-juror bailiff duties
• CSCD-facilities and communication infrastructure
• Juvenile Probation

• Discretionary
• CSCD-level of rehabilitative programs
• Juvenile Probation-level of rehabilitative
  programs

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Public Health and Safety

• Mandatory
• Indigent Medical
• Indigent Burials
• Mental Health-jail
• Hospital (some circumstances)
• Sheriff-suppress crime and arrest offenders
• Homeland Security-various offices
• Victim Notification

• Discretionary
• Level of medical services
• Poverty level of citizens served
• Environmental/sanitation services
• Emergency Medical Services
• Level of enforcement
• Level of preparedness
• Fire Marshall

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Public Welfare and Personnel Benefits

• Mandatory
• Roads (current)
• Sheriff-estray
• Retirement (existing programs)
• Salary (minimum wage)
• Personnel/payroll recordkeeping
• Workers Compensation

• Discretionary
• Roads (new)
• Parks
• Library
• Event arenas
• Nuisance abatement
• Family services
• Elder services
• Community development
• Retirement (new employees)
• Salary (position appropriate-market)
• Medical benefits

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Conclusion

• The purpose of this presentation is to help you
  better understand what the effects of caps are
  and how they could affect you.
• The truth is county government already operates
  under an 10 appraisal cap and an 8 rollback
  rate.